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How to Start a Group Home
Last Updated: June 15, 2022 References Approved
This article was co-authored by Dan Bodner and by wikiHow staff writer, Christopher M. Osborne, PhD . Dan Bodner is a Transitional Shelter & Homelessness Expert and the CEO & Founder of QuickHaven Transitional Shelters. With over 20 years of experience, he specializes in executive leadership, product development, and innovation, which have helped him develop modular tiny homes to improve the lives of those affected by homelessness. Dan earned a BA from Vassar College and an MS from the University of Texas at Austin. There are 12 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 47 testimonials and 91% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 724,159 times.
A group home can refer to many things, but it generally is a site that provides twenty-four hour non-medical care in a structured environment. [1] X Research source They often focus on the elderly, people with mental or physical disabilities, or those dealing with substance abuse. Starting a group home can lead to a rewarding career helping people in need.
Comparing Your Vision to Reality

- In all honesty, if your primary goal is anything other than to help vulnerable people, running a group home probably isn’t for you. The job requires hard work, long hours, significant expense, and ample frustration, so you need to be able to find your reward in the good you’re doing for others. [2] X Research source
- Think about who you want to serve with your group home. Seniors? The disabled? At-risk children? Despite some similarities, each option offers its own unique challenges and rewards. You may want to visit several types of group homes to get a feel for the differences. [3] X Research source

- Conduct a “needs assessment” of the local area in which you hope to start your group home. How many similar homes exist in the area? What is their average occupancy level? Is there a need for more? Can you provide a group home setting that will distinguish you from the pack?
- Here, as with numerous other times during this process, you should contact the government agencies that oversee group homes in your area (this will vary by jurisdiction). Ask if there is a need for another group home, and if so, what type is most in demand. You can also contact local social service organizations, hospitals, probation offices, and such for insights into group home needs in the area.

- There is, in fact, some political momentum in the U.S. to cut federal funding for group homes for children, based on examples of abuse and exploitation and questions about their effectiveness. [5] X Research source
- You may well find opposition among local homeowners when it comes time to locate your group home. Even if you’re looking to serve only senior citizens, some people reflexively oppose the notion of having any sort of group home in their midst, often citing the potential risk to property values. When the time comes, make sure you have all your legal “ducks in a row,” and also work on soothing neighborhood nerves by explaining the purpose and need for the group home and the provisions you will make to be a beneficial neighbor.

- Title Page and Table of Contents.
- Executive Summary, in which you summarize your vision for the company.
- General Company Description, in which you provide an overview of your company and the service it provides to its market.
- Products and Services, in which you describe, in detail, your unique product or service.
- Marketing Plan, in which you describe how you'll bring your product to its consumers.
- Operational Plan, in which you describe how the business will be operated on a day-to-day basis.
- Management and Organization, in which you describe the structure of your organization and the philosophy that governs it.
- Financial Plan, in which you illustrate your working model for finances and your need from investors.
- The U.S. Small Business Administration ( https://www.sba.gov/ ) and similar small business support entities can also offer guidance on developing a business plan.

- Along with guidance for your business plan, the U.S. Small Business Administration also offers a wealth of information on the process and expectations for securing small business loans from financial institutions.
- Inquire with the local and state agencies responsible for overseeing group homes in your jurisdiction, to see if there are grants or low-interest loans available.
- Don’t be afraid to get creative in securing start-up funding for your group home. The options can range from crowdfunding to renting out part of your residence. Borrowing from friends and family is often an option as well, although you must balance its benefits with the possible awkwardness that can arise from imposing a business relationship on a personal one. [7] X Research source
Navigating the “Red Tape”

- In California, for example, a group home for children must have the written support of the host county (among other requirements) to be eligible for essential reimbursement funding via the AFDC-FC program. [8] X Research source
- Connecticut, as another representative example, has regulations for group homes covering areas ranging from telephone service to clean bathrooms. You are likely to need all the help you can get in navigating through the red tape necessary to start a group home. [9] X Research source

- In California, group homes for children are licensed by the state Department of Social Services (CDSS). [10] X Research source
- In Florida, the Department of Health provides information but not licensing for group homes; that responsibility lies (depending on the nature of the facility) with either the Agency for Health Care Administration or the Department of Children and Families (DCF). [11] X Research source
- In Connecticut, the Department of Developmental Services (formerly the Department of Mental Retardation) handles licensing for group homes for the mentally disabled. [12] X Research source
- State licensing for your facility is likely only the start of the process. You may need to be personally licensed as a Certified Administrator of Group Homes, for instance. [13] X Research source

- Start by contacting your local (such as county) department of health, or human services, or social services, or whatever other unit seems most likely to deal with the operation of group homes in your area. Step up to the state and federal levels as warranted.
- Ask lots of questions, and be very patient. Remember why you want to render this valuable service to your community. It can never hurt to solicit guidance from existing group home operators as well.

- Unfortunately but not surprisingly, establishing non-profit status in the U.S. is not a quick and easy process. You need to create a corporate entity by filing Articles of Incorporation with your state, then begin work on the lengthy Form 1023 provided by the IRS, then, if approved, circle back to the state level to ensure your exemption from state taxation. You may find it beneficial to hire an attorney well-versed in this process. [17] X Research source [18] X Research source
- Check to determine whether your state requires insurance coverage for your group home, [19] X Research source but make sure you obtain sufficient insurance covering liability, fire, and theft, among other areas. [20] X Research source

- Completing Form I-9, which verifies an employee’s eligibility to work in the U.S.
- Providing Form W-4, which determines federal tax withholding for each employee.
- Determining your individual state’s requirements regarding new hire reporting, tax reporting, and worker’s compensation insurance.
- Establishing a functional record-keeping operation so you can keep track of your many responsibilities as an employer.
Establishing Your Home

- Familiarize yourself with local zoning regulations, so you know where you can legally establish a group home. Also look into local and state requirements for group home facilities; in Connecticut, for instance, there are specific square footage requirements for resident bedroom sizes. [21] X Research source
- You may face opposition from local residents who are not keen to have a group home in their midst. They will often cite safety concerns, decreased property values, or even traffic and parking problems as reasons for opposition. Even if you have verified your legal right to establish your home, be prepared to explain and defend (in a neighborly manner) the benefits your group home will offer to the community.

- Although based on 1998 figures, the sample budget for a group home serving 8-12 children in Georgia provided at https://www.cga.ct.gov/2003/rpt/2003-R-0169.htm may prove a useful point of reference. Note the estimated expenses of $250,000 per year for a relatively small group home, and the importance the 60% per diem reimbursement rate provided by the state of Georgia after the first year of operation.
- Basically, don’t expect to make big money by operating a group home. Focus on the good work you are doing for those in need.

- Finding people with (positive) experience working in a group home setting is great, of course, but don’t automatically exclude everyone without experience. Consider educational backgrounds and training, as well as temperament and personality traits. Working in a group home setting requires lots of patience, perseverance, and compassion; it takes the right kind of person with the right kind of attitude to succeed.
- At the interview, asking questions like "Can you provide an example of a problem that you successfully solved?" may offer insights into a potential employee's ambition, ingenuity, and work ethic. [22] X Research source Keep in mind that such questions are common, however, and the interviewee may have prepared stock answers already. (An inability to answer effectively is thus a bad sign.) In addition, try to think up a few problem-solving hypotheticals, for instance, that are specific to the group home setting (“How would you deal with a resident that is / says / does …?").

- For example, if you are operating a group home for abused children, it will be essential to your survival as a business that such children “in the system” be located with you.
- Depending upon your location, a legitimate “host letter” (or similar) may be required in order to receive reimbursements. [24] X Research source
- Inquire with the local government authority responsible for group homes regarding the requirements and process for acquiring this document.

- How to Open a Small Business offers a nice range of general advice on the topic, much of which is relevant to the group home experience.
- Advertising is important, even if logo balloons and prize giveaways may not be right for your group home’s grand opening. But, spreading the word about your business through traditional, digital, and social media methods is still valuable. For group homes in particular, making connections with the proper government agencies and community organizations — charitable, religious, educational, and so forth — may be your most vital form of advertising.
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- ↑ http://www.cdss.ca.gov/cdssweb/entres/forms/english/pub223.pdf
- ↑ http://www.peace-university.net/41016.php
- ↑ http://valleyteenranch.org/programs/additional-programs/starting-a-group-home/
- ↑ http://www.psmag.com/politics-and-law/is-it-time-to-start-shutting-down-group-homes-for-troubled-children
- ↑ https://www.sba.gov/writing-business-plan
- ↑ http://www.businessnewsdaily.com/1733-small-business-financing-options-.html
- ↑ https://www.cga.ct.gov/2003/rpt/2003-R-0169.htm
- ↑ http://www.floridahealth.gov/environmental-health/group-care-facilities/residential-group-care.html
- ↑ http://www.ccld.ca.gov/PG519.htm
- ↑ http://www.nolo.com/legal-encyclopedia/nonprofit-tax-exempt-status-501c3-30124.html
- ↑ https://www.501c3.org/how-to-start-a-501c3-nonprofit/
- ↑ http://www.entrepreneur.com/article/241524
About This Article

Before you start a group home, analyze your local market to make sure there is a need for a new facility in your area. Then, create a detailed business plan in which you describe your unique service, how you plan to serve the community, and how your business will be operated on a day-to-day business. Take this time to create a budget as well, including finding sources for financing. Keep reading for information on how to navigate red tape on the road to starting your group home. Did this summary help you? Yes No
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Group Homes for Disabled Adults
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Shereen Lehman, MS, is a healthcare journalist and fact checker. She has co-authored two books for the popular Dummies Series (as Shereen Jegtvig).
Group homes for the disabled are an alternative to institutional care . They may be a privately run for-profit business, a nonprofit facility, or run by the government. Privately run group homes do not have government oversight unless they receive government funding. A nonprofit or government-run facility must adhere to certain rules and regulations, which can determine to whom they may provide services.
Each facility is different, depending upon state and local regulations, and the options available will vary. However, a group home usually provides:
- Activities, such as field trips, crafts, and transportation services to medical appointments, shopping, and entertainment
Group Home Residents
Many group homes cater to a particular group, such as disabled adults , teenagers, or children. For this reason, you need to research a group home before committing to a particular one.
Some families believe that a group home setting, in contrast to an institution, provides a community feeling absent in other types of facilities. Relatives report their loved ones who previously lived in an institution seem:
- More alert and engaged
- Have regained skills they may have lost while in institutions (such as feeding and toileting themselves)
- Healthier overall in appearance
Selection Tips
Choosing a group home is a big responsibility. You should sit down and speak with an administrator at length about expectations and needs before choosing a facility.
Do not let administrators rush you through the interview, and make sure they answer all of your questions to your satisfaction. The administrator should welcome your questions and not be agitated. If they seem unable to answer your questions or appear irritated by them, look for a better run facility that is open to your inquiries and concerns.
Things to Look For
The following are things to look for when choosing a group home:
- Does the facility look and smell clean? Ask to inspect a resident room.
- Do the current residents look (and smell) clean and well-groomed?
- How do they handle urgent health concerns?
- Are medical professionals available on-site to care for special-needs patients around the clock?
- Who will administer medicine?
- How do the employees interact with visitors?
- Who assists the residents in keeping in contact with their family, and how will they accomplish this (i.e. TTY, letters, phone calls, video calls)?
- For employees who interact with residents, what type of training course did they complete, and how long was the training?
- What are the week's scheduled activities?
- Do the employees seem engaged with the residents, or are most of the residents alone?
Visiting a group home should occur more than once when you are in the selection process, and preferably at least once unannounced. This should give you a good idea of what things are like during their day-to-day operation. After you choose a facility, it is important to visit regularly so you can spot potential problems or abuses.
Resources for More Information
To find out more about group homes, residential homes or nursing homes for the disabled, contact the following organizations in your state or locality:
- State Department of Health and Human Services
- Division of Developmental Disabilities
- State Human Rights Committee
- Commission on Quality of Care and Advocacy for Persons with Disabilities (New York )
By Charlotte Gerber Charlotte Gerber is a disability writer and advocate. She has made a career of educating the public about various diseases and disabilities.
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Home » Healthcare » Group Home
How to Start a Group Home for Disabled Adults [Business Plan]
Group homes for adults with disabilities are designed to provide personalized and individualized care that promotes independence for such adults. Many people with disabilities choose to live in supportive group homes with several other people with special needs. Depending on the program, these homes can be staffed with counselors and other workers who help the residents live on their own, and in some cases, the residents live without live-in assistance.
Group homes come in many varieties and can be paid for in many ways, including private payments or grants. Available statistics show that there are now about 7,629 group homes (group homes for adults with disabilities inclusive) in the United States in 2023, an increase of 1 percent from 2020.
The data also shows that California has 754 group homes (group homes for adults with disabilities inclusive), Florida has 296 group homes and New York has 284 group homes. These are the States with the greatest number of group homes in the United States of America.
Steps to Start a Group Home for Adults With Disabilities in 2023
Table of Content
1. Conduct Market Research
Memorable business name ideas for group home for adults with disabilities , register your business, cost analysis and budgeting, write a business plan, marketing plan, financial projection, set up your office, hire employees, launch the business proper.
If you intend to start a group home for adults with disabilities, then you must make sure you conduct thorough market research. Your aim of conducting market research for your group home is to get an in-depth analysis of the industry, generate new questions, concepts, and understand the market space better. With successful market research, you will be able to explore the unknown and unlock new possibilities in the industry.
a. Who is the Target Market for Group Home for Adults With Disabilities?
The target market for a group home for adults with disabilities are adults who are suffering from;
- Cerebral palsy
- Down syndrome
- Spina bifida
- Traumatic brain injury
- Visual impairments
- Mental/psychiatric challenges
b. Is Group Home for Adults With Disabilities a Profitable Business?
Yes, Group home for adults with disabilities is a profitable business and statistics show that the market size of the group home was $9.9 billion in 2023.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to group homes for adults with disabilities because this line of business is a niche idea in the group homes industry.
d. Who are the Major Competitors?
- CHAI Dallas
- Griswold Home Care
- Right at Home
- New England Village
- Oak Hill Homepage
- Camp Bloomfield.
e. Are There County or State Regulations or Zoning Laws for Group Home for Adults With Disabilities?
Yes, and zoning laws require group homes for adults with disabilities to follow specific rules and regulations, including some that apply only to group homes. Please note that in many communities, zoning laws require group homes for adults with disabilities to apply for a permit from the city.
This application process allows the city’s zoning department to determine whether the group home meets the zoning rules of the community. Permits also ensure that all group homes are properly licensed with the county or state agencies.
f. Is There a Franchise for Group Home for Adults with Disabilities?
Yes, there are franchise opportunities for a group home for adults with disabilities. Here are some of them;
- Right at Home.
g. What Do You Need to Start a Group Home for Adults with Disabilities?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
- Startup and Working Capital
- More Care® Group Home For Adults With Disabilities, LLC
- Edna Cole® Group Home For Adults With Disabilities, LLC
- Able Care™ Group Home For Adults With Disabilities, Inc.
- Blessed Hands™ Group Home For Adults With Disabilities, LLC
- All Care® Group Home For Adults With Disabilities, Inc.
- Pro Care® Group Home For Adults With Disabilities, LLC
- Destiny Helpers® Group Home For Adults With Disabilities, LLC
- Becky Zion® Group Home For Adults With Disabilities, Inc.
- Comfort Care® Group Home For Adults With Disabilities, Inc.
- Synergy Care® Group Home For Adults With Disabilities, LLC
- Louisa Mendez® Group Home For Adults With Disabilities, LLC
- Axel Care™ Group Home For Adults With Disabilities, Inc.
- Golden Care™ Group Home For Adults With Disabilities Inc.
- Inner City® Group Home For Adults With Disabilities, LLC
- Covenant Care® Group Home For Adults With Disabilities, Inc.
- Universal Care® Group Home For Adults With Disabilities, Inc.
- Landers Smith© Group Home For Adults With Disabilities, Inc.
- Ready Care™ Group Home For Adults With Disabilities, LLC
- Rose® Group Home For Adults With Disabilities, Inc.
- Green Tree® Group Home For Adults With Disabilities, Inc.
a. What Type of Business Structure is Best for Group Home for Adults with Disabilities?
Even though there are several options when it comes to the business structure for a group home for adults with disabilities, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.
Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Group Home for Adults with Disabilities?
- General Business License
- Care Giver or County Worker License
- Health and Safety Permit
- Zonal Permits
- Director’s License
d. What Type of Certification is Needed to Open a Group Home for Adults with Disabilities?
You don’t need any certification to open a group home for adults with disabilities.
e. What Documents are Needed to Open a Group Home for Adults with Disabilities?
These are some of the basic legal documents you need to legally open a group home for adults with disabilities in the United States of America;
- Business and Liability Insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval (for your office)
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLC
- Insurance Policy
- Online Privacy Policy Document (basically for online payment portal)
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a group home for adults with disabilities, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
a. How Much Does It Cost to Start a Group Home for Adults with Disabilities?
When it comes to starting a group home for adults with disabilities, startup costs can range from $150,000 (if you are opting for a franchise) to over $500,000.
b. What are the Cost Involved in Starting a Group Home for Adults with Disabilities?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Marketing, Branding and Promotions – $3,000.
- Business Consultant Fee – $2,500.
- Insurance – $2,400.
- Rent/Lease – $50,000.
- Other start-up expenses including, satellite TV subscriptions, stationery ($500), phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $30,000
- Start-up inventory – $5,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping – $10,000
- Website: $600
- Miscellaneous: $5,000
c. What Factors Determine the Cost of Opening a Group Home for Adults with Disabilities?
- The location you intend covering
- The required licenses and permits
- The type of office facility
- Additional service offerings
- The cost of hiring and paying a business consultant and attorney
- The cost for branding, promotion, and marketing the group home
- The cost for furnishing and equipping the group home
- The cost of insurance policy covers
- The cost of registering the business
- Sourcing of your supplies and ongoing expenses
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
You don’t need to build a facility for your group home because you can rent a decent facility to get the business started.
e. What are the Ongoing Expenses of a Group Home for Adults with Disabilities?
- Cost of stocking up supplies such as medications, toiletries, beddings et al
- Cost of food supplies and ingredients
- Utility bills (gas, internet, phone bills, signage and sewage et al)
- Salaries of employees
f. What is the Average Salary of your Staff?
- Head of Group home for adults with disabilities (President) – $45,000 Per Annum
- Administrator – $36,034 Per Annum
- Home Caregivers/County Aging Workers – $32,878 Per Annum
- Account Officer – $35,000 Per Annum
- Front Desk Officer – $28,000 Per Annum
- Cleaners – $22,000 Per Annum
g. How Do You Get Funding to Start a Group Home for Adults with Disabilities?
- Raise money from personal savings and sale of personal stocks and properties
- Raise money from investors and business partners
- Sell shares to interested investors
- Apply for a loan from your bank/banks
- Applying for business grants and seed funding from the government and donor organizations
- Source for soft loans from family members and friends.
a. Executive Summary
Axel Care™ Group Home for Adults with Disabilities, Inc. is a registered home for adults with disabilities that will be based in Dallas, Texas, USA. Our Group home will focus on providing companionship, giving adults the social support they need to live an active, enriching lifestyle. Our Group home for adults with disabilities will also focus on providing help with routine activities of daily living, like sitting, standing, or moving around.
b. Our Service
- Care-planning services
- Using the bathroom and bathing.
- Dressing and grooming.
- Walking, sitting, standing, and transferring in and out of bed.
- Shopping, preparing, and serving nutritious meals.
- Light housekeeping
- Providing driving services to help run errands, attend appointments, or enjoy social outings
- Companionship — including playing games, sharing meals, doing art projects, and enjoying pleasant conversation
- Social activities.
c. Mission Statement
Our mission is to build a highly successful group home for adults with disabilities that provides dependable and convenient accommodation, and multiple opportunities for ongoing family interaction for adults with disabilities.
Vision Statement
Our vision is to better the lives of individuals and families with unique developmental needs by guiding and supporting them every step of the way.
d. Goals and Objectives
The goals and objective for a group home for adults with disabilities are for them to learn from others with different abilities as they interact regularly. For these reasons, group homes offer a variety of activities for adult residents.
e. Organizational Structure
- Head of Group home for adults with disabilities (President)
- Administrator
- Home Caregivers/County Aging Workers Fundraiser
- Account Officer
- Front Desk Officer
- Security Guards
a. SWOT Analysis
The strength of a group home for adults with disabilities lies in the fact that they have a team of qualified professionals manning various job positions in the organization. So also, the location, the business model they will be operating on, and their excellent customer service culture will count as a strong strength for the group home.
The group home for adults with disabilities is a new business that is owned by an individual (family), and they may not have the financial muscle to sustain the kind of publicity that will give the business robust visibility.
Opportunities:
The opportunities that are available to a group home for adults with disabilities are unlimited because we have loads of adults with disabilities who need the care of Group homes in the United States.
Just like any other business, one of the major threats that you are likely going to face is an economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront a group home for adults with disabilities is the arrival of a bigger/well-established group home for adults with disabilities in the same location where your facility is located.
b. How Does Group Home for Adults with Disabilities Make Money?
A group home for adults with disabilities makes money by charging their clients for services rendered or via grants and donations from donor agencies and individuals.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales & Advertising Strategies
- Place adverts on both print (newspapers and health-related magazines) and electronic media platforms
- Sponsor relevant community-based events/programs for the elderly
- Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your group home for adults with disabilities
- Install your Bill Boards in strategic locations all around your city or state
- Distribute your fliers and handbills in target areas
- Contact households, businesses, and every adult in the neighborhood where your group home will be located informing them of your business and the services you render
- List your group home for adults with disabilities in local directories / yellow pages
- Advertise your Group home for adults with disabilities on your official website and employ strategies that will help you pull traffic to the site.
- Position your Flexi Banners at strategic positions in the location where your Group home for adults with disabilities is located.
- Ensure that all your staff members wear your branded shirts and all your vehicles and trucks/vans are well branded with your company logo et al.
a. How Much Should You Charge for your Service?
Our average service cost will be between $35,000-$65,000 annually; this covers the entire cost of the individual living in the facility, including food, utilities, and the payment to the caregivers who help the residence daily.
b. How Much Profit Do Group Home for Adults with Disabilities Make a Year?
It depends, but available reports show that owners of a group home for adults with disabilities profit an average of $54,000 per year.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the group home (number of clients they are servicing per time)
- The location the group home is covering
- The management style of the group home for adults with disabilities
- The business approach and model of the group home
- The advertising and marketing strategies adopted by the group home
- The number of years the group home is in business
d. What is the Profit Margin of a Group Home for Adults with Disabilities?
The profit margin of a group home for adults with disabilities is not fixed. To a large extent, after subtracting your overhead, you could make close to 20 percent as profit.
e. What is the Sales Forecast?
Below is the sales forecast for a group home for adults with disabilities. It is based on the location of the business and other factors as it relates to such startups in the United States;
- First Fiscal Year: $340,000
- Second Fiscal Year: $450,000
- Third Fiscal Year: $580,000
a. How Do You Choose a Perfect Location for Group Home for Adults with Disabilities?
- The demography of the location especially as it relates to the population of adults with disabilities
- The demand for group homes for adults with disabilities in the location
- The purchasing power of residents of the location
- Accessibility of the location
- The number of group homes for adults with disabilities and other facilities like senior care, and nursing homes in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Group Home for Adults with Disabilities?
- Las Vegas, Nevada
- Los Angeles, California
- Chicago, Illinois
- Boston, Massachusetts
- Silver Spring, Maryland
- Rowland Heights, California
- Portland, Oregon
- New York City, New York
- Atlanta, Georgia
- Dallas, Texas
c. What Equipment is Needed to Operate a Group Home for Adults with Disabilities?
When starting opening a Group home for adults with disabilities, you will not need any technical gadgets except office and nursing equipment, first aid kits, smoke detectors, carbon monoxide detectors, fire extinguishers, an emergency preparedness kit, an emergency plan, among others.
In setting up a small office, you will need a computer, printer, software apps, telephones, pager, photocopier, and scanner. This equipment, tools, and instruments can be purchased as fairly used especially if you have limited finance to meet your budget.
As regards the number of employees you are expected to kick start the business with, you would need to consider your finance before making the decision. When it comes to starting a standard group home for adults with disabilities on a large scale, you would need the services of the following professionals; the head of business (you can occupy this position), administrator, caregivers, front desk officer, cleaners, and security guard.
You can decide to start your group home for adults with liabilities by organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.
The bottom line is that with a proper launching of the group home for adults with disabilities, you will be able to officially inform people in your city that your group home is open for business.

a. What Makes a Group Home for Adults with Disabilities Successful?
- Ability to attract clients regularly
- Disciplined and dedicated workforce
- The heart to serve and care for people with disabilities
- A good relationship with stakeholders
- Good care techniques and programs.
b. What Happens During a Typical Day at a Group Home for Adults with Disabilities?
- The group home for adults with disabilities is open for the day
- Caregivers are briefed in the office (in some cases though)
- Caregivers provide all the needed support and care to adults with disabilities
- Marketing/website upkeep
- Administrative duties are carried out
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Group Home for Adults with Disabilities?
- Good managerial and human development skills.
- An interest in helping and caring for other people, regardless of their condition.
- The ability to communicate clearly and sensitively when talking to people and their families.
- Good listening skills.
- Great problem-solving skills and the ability to adapt and act accordingly.
- Organizational skills.
- Experience working as a caregiver or social worker
- Experience working for a group home for adults with disabilities.
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Pros and Cons of Owning a Group Home
Are group home businesses profitable? What are the pros and cons of starting a group home business ? Here is everything you need to know. A group home is generally used to refer to a site, building or location that provides twenty-four hour non-medical care in a structured environment.
One of the main objectives of group houses is to accommodate the elderly, people with mental or physical disabilities, or those dealing with substance abuse and need some level of help. The U.S population is getting older, with an estimated 20% of the population expected to be over the age of 65 by 2030. Break that down and it comes out to 10,000 Baby Boomers hitting the age of 65 every day.
Getting old comes with certain problems which can be in the form of disabilities. Certain disabilities require more care than independent living can provide. Small group homes are a good answer to this. They provide some social structure which is as important as personal care and safety.
If you are trained in this area, you can decide to open a group home in the United States. For commercial real estate investors with an eye on emerging markets, group homes are clearly an opportunity for serious investors interested in hopping on a trend expected to last for a minimum of 30 more years.
But before you get started, you need to educate yourself on the pros and cons of starting a group home business. Although it is certainly an industry with a high potential for growth, there are also strict regulations and licensing requirements, as well as high staff turnover. In fact, owning a group home is less like owning real estate and more like running a very demanding full-time business, unless you hire an experienced management company .
If you are thinking of owning a group home, you should know that there are pros and cons inherent in the business. We would highlight some of these advantages and disadvantages for you.
Pros of Owning a Group Home in the United States
Table of Content
1. Rapid growth industry
2. the business is quite profitable, 3. career satisfaction, 4. requires lesser startup cost than others, 5. it is an opportunity to restore human dignity, 1. very stressful to run, 2. payment bureaucracy, 3. stiff competition, 4. frequently changing regulations, 5. unexpected client turnover, 6. it comes with a lot of mess, 7. it is financial intensive to run, 8. high staff turnover, 9. stringent licensing requirements.
One of the major advantages to opening a group home for the elderly is the fact that the market for such services will continue to grow at an above-average rate. The Bureau of Labor Statistics points out that the health-care industry will be one of the fastest-growing industries in the United States in the period from 2008 to 2022, with wage and salary jobs growing at a rate of 22 percent.
One primary reason for this rapid growth will be the increased number of individuals entering the elderly population. As this trend continues, those seeking to open a group home will be in a good position to benefit from this growth.
Another advantage of a group home business is its profitability . The earning potential in the health-care-administration field is another potential advantage for starting a group home. According to recent reports, residential care homes make over $6000 per resident annually before taxes.
So if you have more customers, you can make a sizable profit from the business. However, the business must be done right for it to thrive and be effective. Reports suggest that most group homes tend to sacrifice care in their quest for profits. If you are unable to strike a balance between care and profit margins, you will end up performing poorly as a caregiver or business owner.
Perhaps one of the major advantages to running a group home or another type of care home is the level of job or career satisfaction that you may experience. Knowing that you provide a much-needed service for those who are in poor health or in their declining years can be an extremely gratifying way to make a living.
The National Care Planning Council notes that group homes are a cost-effective way for many patients to recover from illness and injury. Therefore, not only do you get the satisfaction of providing a needed service, but you also get to provide one that helps alleviate the financial hardship often associated with the health-care industry.
Group homes typically have a lower monthly cost than a nursing home as continuous medical care is not provided. There are also some forms of financial assistance available through long-term insurance and veteran’s programs. This can help cushion the finances of the business.
The tragedy of life is that a parent can take care of two or more kids until they are adults, but then it becomes hard for the two adult children to take care of their ailing parent. Residential care homes help cover that gap by offering care to people who need it at a time in their lives when they are truly helpless. Therefore, you should pursue this business if you want to change the world, as it gives you the chance to restore human dignity.
Cons of Owning a Group Home in the United States
One potential disadvantage of starting up a group home is the level of responsibility and work you may have in the initial stages of starting the home. Until you have adequate staffing that will allow you to delegate responsibility, you may be required to carry much of the burden associated with running the facility.
Unless you have deep pockets or sponsors with deep pockets, which would allow you to hire a well-qualified administrator and full-time staff who can work around the clock, you may find yourself bearing the brunt of the workload.
Group homes have significant workload, and most owners agree that this is perhaps the biggest problem they have to deal with. You are not the only one who will get fatigued; your team will also struggle with keeping up with the care demands.
When that time comes, you have to bring in more people to help (which will reduce your profit margins). If you are not careful, you might end up in losses. The stress can also bog you down. Exhaustion might be the least of your worries once the numbers stop making sense.
The monetary side of the equation can prove to be another disadvantage of starting a group home business. Given the expensive nature of various types of health-care equipment, the rising cost of insurance and the dependence of many elderly patients upon government insurance programs like Medicare, finances can fall short.
Having to deal with all of the government and insurance-industry red tape to receive payment can be one major disadvantage. Medicare does not cover the costs of an assisted living facility . In addition to a monthly charge, personal care is typically treated as an add-on charge.
One of the most difficult and nerve- racking aspects of the group home business is getting your first client. In some states, new providers are given a year to get their first client. If they are unable to obtain a client within that year, their license is taken. Keep in mind that during this time they often still have a mortgage and utilities to pay while waiting to get a client.
Competition from larger more established agencies can make it difficult to break through and get new clients. Case managers often get comfortable with the well-known provider and don’t think about new providers who could provide good services as well.
Competition from other residential services such as Sponsored Residential services and Community Based residential services have also cut into group home profits. These services are allowing people to stay home with family serving as the provider or getting another provider to come into the home to provide the support services.
New regulations can also impact the success of a group home. Changes in the amount of billable days and changing reimbursement rates can significantly impact the amount of revenue that is generated. Some states have moved to a system that uses an assessment such as the Supports Intensity Scale or SIS to determine the amount of funding that the client receives. In most cases, individuals who are higher functioning and require the least amount of support receive a lower reimbursement rate.
Clients leave for a number of reasons. Families can decide to move a loved one for any reason due to provider choice. Clients also get older and can require a more medically –focused facility such as an Intermediate Care Facility or ICF/IID.
Clients also pass away. It’s an unfortunate reality that a resident lost for any reason is a loss of close to $100,000 in annual revenue that needs to be replaced. This can be a major hit to small providers who might not have those funds on reserve.
To run a group home, you will need to stomach all kinds of messes and odors, as not every old person will be able to take care of their business. Some will throw up, soil their clothes, and other things that you naturally don’t expect from grown-ups. Furthermore, you might pick relatively healthy candidates for your group home only to discover that their situations worsen with time. For example, people with developing mental problems will worsen with time.
Care businesses have one dilemma, they must provide quality care, even when it means sacrificing their profitability. That said, you have to hire professional caregivers, support them with volunteers, and ensure that they have medical professionals around.
All of this will cost money. The average cost of care also goes up every year because the cost of this labor is also increasing. So you will be forced to pick a smaller group that is profitable rather than a large group that will not be profitable.
Because of the stressful nature of the business, one of the problems group home owners usually face is high staff turnover in the business. Staff very easily burnout with all the stressful care they provide and easily thrown in the towel leaving the owner of the business in a dilemma.
Government of the United States is always very protective of its people, and as such any business that takes care of people is highly regulated. This means that to start this business, you need to procure licenses that come with stiff requirements. If you do not complete these requirements, or fail at any point to update them, you can risk getting shut down.
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The Benefits of Group Homes for Adults with Developmental Disabilities

The process of transitioning an adult with developmental disabilities into a managed residential services setting requires caregivers and family members to remember that the ultimate goal is to maximize that individual’s community integration their ability to be independent and engaged with people around them. Depending on the degree of the disability, a group home offers a fantastic setting in which to accomplish these goals and still allow the proper level of care and oversight to be maintained. Let’s look at some of the benefits group homes provide for adults with developmental disabilities.
Structure of Group Homes
Adult residential facilities allow up to 3 adults with developmental disabilities to cohabitate under a single roof, where they work together with each other and a small team of caregivers to manage the space and go about their daily activities.
By placing up to three adults with developmental disabilities under a single roof and encouraging engagement between them, a number of benefits emerge in their daily interactions.
Socialization
Under other settings, adults with developmental disabilities might experience isolation and never learn to work with others towards goals. In a group home, they have to work with their roommates to keep the space clean and perform various household tasks, allowing socialization and the opportunity to learn how to help others achieve different goals. In working together with others, adults with developmental disabilities can teach others things they excel at, while at the same time learning from others who may have different skills from their own.
Independence
When living with family, we tend to come to rely upon those who care for us to take care of our various needs. While having roommates in group setting engenders socialization, it can also inspire and teach adults with developmental disabilities to be more independent by seeing others having to act for themselves as well.
This independence not only goes a long way in building confidence in the individual, but also allows their relationship with family to evolve beyond a state of being someone who has to be cared for into someone who now cares for themselves.
Additionally, the sense of independence extends to the family, who can now go about their day to day as needed with the reassurance that their loved one is receiving the care they need when they need it, rather than having to juggle and balance and prioritize often conflicting obligations.
All the Comforts of Home
Institutional settings can be cold and impersonal. By placing adults with developmental disabilities in a home setting, and then encouraging them to work with their roommates, a group home creates the feeling of living in a home with people they care about and who care about them.
Welcome Home
Our mission at Hands of Heartland is to ensure adults with developmental disabilities have the chance to feel as engaged and empowered as they can, all while learning and growing in a safe and nurturing environment. Our residential services cater to a full range of living arrangements, with continuous residential services being our group home format. If you think a group home setting might be right for a loved one, or want more information on our facilities, and you reside in the Omaha or Bellevue communities, reach out today to set up a tour of our facilities.
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Group homes are homes in the community where a disability service provider both maintains and controls a household as well as coordinates the supports for those who live in the home. (Learn more about this and other models by watching the Autism Housing Network’s Virtual Tour of Housing Options) There is some stigma surrounding group homes, but we have met and heard from residents of group homes who love where they live and the support they can count on. What has been made clear is that the quality of the service provider, the training of their staff and their commitment to the residents is largely determinant on the quality of that particular group home provider. Life Services Alternatives (LSA) is known in California as an exceptional group home (Adult Residential Home) provider. As a parent leader who has advocated for and opened a dozen group homes, LSA’s Executive Director Dana Hooper spoke with us about what group homes can offer and things to look for in a service provider. Watch the video below to learn more about Hooper’s work and continue further to read our conversation.
Q: What is and who typically lives in a group home?
A: Group homes (aka Adult Residential Facilities) are homes for 4-6 adults with developmental disabilities. In California, these homes are licensed by Department of Social Services and are vendorized by one of 21 Regional Centers. The homes fall into various categories and provide different levels of care and support that reflect the differing needs of the residents, such as how much help is needed for daily living, getting around, medical conditions and to keep them safe and healthy.
Q: What types of support needs, family circumstances, or personalities are best served in a group home setting?
A: Certain types of needs (such as around-the-clock nursing care) are best served in a group home. No one family circumstance or personality is best served.
Q: What are the pros of living in a group home?
A: The opportunity to develop relationships with roommates and to work together to learn to be more independent. Living in a group home can provide opportunities for socialization and an opportunity to work with others to build upon these skills. This can be hard to find when living alone or in a smaller group setting. We have found that when people with differing abilities live together, they complement and learn from each other.
Q: What should be considered about choosing life in a group home instead of one’s own apartment or an adult foster care arrangement?
A: Consider which environment the individual would rather live in and take a close look at the providers and the specific programs offered to see what is most beneficial to the individual. This is where knowing the needs and individual’s preferences and personality is so important. Everyone is different. I’d suggest seeing the program in action and meeting the individuals and staff members before choosing.
Q: Why do group homes sometimes get negative press?
A: First of all, quality can vary in any industry. There is a natural tendency to assume that all providers are bad just because a few received negative press. In California, providers may be “for profit” or “not for profit” organizations. The State sets the rates for residential services, and it’s the same for all providers. Unfortunately, the State has a history of freezing rates and/or not keeping up with the cost of doing business. This puts a tremendous amount of pressure on providers to keep costs down to survive. Providers have to find ways to maintain quality. This may include outside fundraising, better cost control or efficiencies.
Q: What are characteristics to look for when considering a specific group home provider?
A: Visit the homes to see how well maintained they are, as this is a good indication of how well funded and run the organization is. Talk with staff and ask questions to get to know how they run their program and how they operate. (See the questions below that may be useful in determining the quality of the staff and programs and determining the fit for you and your family member.)
Q: What questions should be asked when considering a specific group home provider?
A: Here is a list of questions to consider:
- What are their values – can I trust them?
- What is the level of quality of their homes/program and staff? Can I observe and verify the quality through references?
- Have they demonstrated that they have adequate financial resources and stability?
- How involved in the community are residents?
- What does community involvement look like?
- How do they view family involvement?
- What kind of a track record do they have?
Q: Do you have any ideas on improving the quality and/or ensuring accountability of group home providers?
A: Yes, absolutely. The rate structure needs to be overhauled and rates aligned with outcomes/performance. Higher quality programs and/or programs located in higher cost of living areas should have higher rates. The oversight today is oriented toward detecting/correcting deficiencies and doesn’t address quality.
About the Author
Desiree Kameka, Director of Housing
Desiree is the project lead for the Autism Housing Network. Her work for the Madison House Autism Foundation focuses on researching housing issues, advocating on issues of autism in adulthood, and presenting her work at local and national gatherings. She visits residential communities and social enterprises across the USA and highlights their unique victories and learning curves while sharing stories of individuals on the spectrum or who have other developmental disabilities. Her passion is empowering autistic adults and parents to create a future that is exciting and life affirming by offering small group consultations for forming projects.
5 Comments on “What Can Group Homes Offer People with Disabilities?”
Dont have a comment.Am looking for some help for my grandson . I dont know what to do.he autism living in a home and they want him out.need help finding a group home for him.
Greetings Marcia!
1) It’s important to explore what type of housing and support arrangements may fit your loved one best. I suggest watching our Virtual Tour of Housing options video series to get an idea of options: http://www.autismhousingnetwork.org/education/virtual-tour-housing-options/
2) Here are our suggestions on how to use the resources on the Autism Housing Network to start moving forward with a plan. There are financial assistance and support systems, but they are disconnected so the key is understanding them and seeing if your loved one would qualify. DO NOT count your income or any help you give her financially when questions ask about “income”: http://www.autismhousingnetwork.org/education/explore-housing-options/
3) Take a look at our online housing directory. http://www.autismhousingnetwork.org/housing/ It is continually updated as more projects come up.
4) We do offer direct consultations for a $100 fee which helps us continue to run our free programming. I would try to understand your family needs and preferences which would lead to a list of steps, links to options and resources specifically for your situation. Simply fill out this form if you would like to schedule a consultation: http://www.autismhousingnetwork.org/schedule-30-minute-consultation/
Hope this is a good start!
I have a large home in 92009; How do I find special needs adults or children for the home?
My 36 year old daughter with high functioning autism needs her own apartment with supervision. She has mood and anxiety disorders which makes it difficult for her to live independently. She is very capable in most areas of her life. She had lived in her own apartment for almost 7 years, but her emotional needs and loneliness got the better of her. She needs a quiet environment but enjoys having people nearby to socialize with. Currently she resides in a shared apartment in an apartment building with 24/7 supervision. Though the supervision brings peace of mind, this is a stressful environment for my daughter…too noisy and chaotic. And she’s not doing well sharing an apartment. I’m constantly looking for alternatives as what is available through the state funded agencies is next to none. I’m willing to think outside of the box. My search for a suitable residence for my daughter is ongoing. My husband and I are getting on in years and this weighs heavily on our minds. Any suggestions, would be appreciated!
We are looking for help for our 26 year old son, non-verbal and in the low functioning side of the Autism spectrum. We have heard of adult autistic persons who found a second home through the Autism Housing Network. My husband and I are full time in taking care of our son and it has been getting difficult each day as he is only confined within the house. Exposing him to a community may be good for him as he will be able to be around both with people with the same disabilities and caregivers.
We truly appreciate your help.
Maritess Rivera
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Setting Up a Small Group Home
When contemplating an ideal environment for a loved one with a disability, a small group home is often considered, given its many benefits. In the majority of instances, families will work to find a placement in an existing group home that is typically owned and operated by a local non-profit service agency. In other situations, families will look to establish a long-term, and hopefully permanent, residence for their family member with a disability. Setting up a small group home requires careful research, and families should weigh the options before undertaking such an effort. For some families, there are limited options for housing options for long-term residential facilities for individuals with disabilities, which can put an additional strain on families seeking permanent housing for their loved one.
There are two important questions James A. Caffry, Esq. cautions should be answered before moving forward with exploring the creation of a small group home. The first question involves the residents that will occupy the home, and if they will need home and community-based services (HCBS) with Medicaid.
If clients suggest creating a non-profit or private group home one of the first questions would also be about funding sources. For the residents, understanding the funding capability and what sources of revenue they’ll need, in addition to their adult’ children’s SSI and/or SSDI benefits to sustain the group living environment is critical information to have at the forefront.
The second key question involves the developmental services system of care in the state the home will be created. What does the state allow in terms of a small, privately owned or non-profit group living situation? It could be a group of families establishing an LLC, or a non-profit who will rely on outside sources of revenue in order to exist. Depending on the situation, the families might need to fund the operation of the building, but the support personnel providing the care for the adults in this living arrangement might be funded through Medicaid.
It’s important to consider scenarios regarding the longevity of the situation. For example, what happens with the LLC if one of the residents wants to move out, or there is a health issue, or a resident dies? Is there a forced buy out? Reviewing the organizing documents and how the home agreements are structured is critical in determining the roles and responsibilities of each family.
Private vs. non-profit group home
Understanding the state laws regarding the creation of a small group home may dictate how the home is established, and under what operating rules.
For families considering a group living model – an entity can perhaps be established as a non-profit under state law, with a 501c3 designation from the IRS. If families can achieve that non-profit status there’s a question of oversight, with an established board of directors and how the organization will be operated. In some states, a nonprofit organization might have to be created as a requirement to receive Medicaid and developmental disability funding.
For a private group home, families might decide ahead of time who will purchase the house, pay for taxes and insurance, and what type of control each family will have on the living arrangements, staffing and daily operation of the home.
Family connections
The pandemic put additional strain on residential housing for individuals with disabilities, and the circumstances for many families, especially parents, generated heightened interest about how and when to band together to create a small group living home.
According to Janet Lowder, CELA, clients typically want to speed up finding a secure living environment for their child with disabilities, while maintaining some control over the type of residential placement their child will be in.
Often families who know each other will band together and look for compatible people to plan something together. If one family is planning a group home, they need to get detailed information about it and sometimes the families join in setting this up. It can be helpful for the families and the individuals living in a group home to collaborate on the research and logistics.
In one instance, a family purchased the real estate for the house, and a group of families who wanted a small group home with a Kosher kitchen were able to pool their resources together to ensure this type of situation for their children. They had a very detailed agreement, with a separate organization and the operation of the house maintained primarily by the family who purchased the real estate.
Decisions about staffing, resident life and activities were decided by the families, with each having an equal vote. The family who had the most financial equity in the arrangement did not have a greater say in the decisions. It can work so that an unequal investment in the small group home doesn’t necessarily equate to how decisions are made about the house.
Creating operating agreements and entering an LLC are both important steps to take for families considering setting up a small group home. The group homes that are thriving typically have been a result of careful planning and execution, with a lot of foresight into how the homes will operate, and how each family will contribute financially and with regards to oversight of the home.
The operating agreement should specify how the funds and resources are being distributed, and if the parties are all equal members in the LLC. In the case that the house doesn’t work financially without a certain number of residents, there can be provisions in place, where a family can have a set amount of time to make alternate arrangements, particularly in the case when a new resident must be identified before a former resident can move out.
There are times when one family might hand pick the other residents to live with their child, but the process can be delayed because the roommates haven’t become eligible for a Medicaid waiver to cover the costs of the staffing in the home. The benefits that the residents qualify for impact who is going to be in the home and how the home is run.
It’s also critical to understand the living situation for each resident, and how long they might be expected to stay in the group home. For individuals with a traumatic brain injury, one to two years might be the expected timeframe for a group living environment, while individuals with longer-term disabilities might require a more permanent housing arrangement.
Staffing issues can be a challenge for some small group homes, so deciding on the management and establishment of quality staffing personnel is important to discuss in advance of the arrangement. Some social service agencies will help provide support for personnel, while in some cases families might want to oversee the hiring of individuals based on a personal connection or specific qualifications.
There might be situations that arise where one resident doesn’t fit in, which can create problems for the other residents in the group home. It’s important to plan ahead to consider how and what this type of conflict will be solved, and what protections exist for the family whose dependent is being asked to leave. Questions around financial responsibilities, notice periods and mediation might be factors that should be addressed early in the conversations.
Although it can work, it can be problematic when family members get too involved in the day-to-day operation of the home and try to insert themselves into the personnel management and decision-making process of how the group home is run. Ideally there should be no surprises, and while it can be difficult for residents to adjust to new circumstances within the group home, everyone should agree on the decision-making process, keeping in mind what will be in the best interest of the residents.
Ideal scenario
While establishing a small group home can create an ideal living environment for an individual with disabilities, there are important conversations and decisions that must be made ahead of time to ensure a successful outcome.
The best-case scenario is that a strong operating agreement is put in place, and that everyone in the small group home is compatible, and financially supported. The homes that work the best have families who agree on a single provider agency and run the day-to-day management of the home. This includes managing the finances of the home, and the oversight of the staff who will ensure the health and safety of the residents.
While there are numerous factors to consider with the creation of a small group home, the ideal living environment for the person with disabilities should remain the priority. Establishing and maintaining consistency with people, place and a stable environment can be accomplished with the thoughtful creation of strong operating agreements, qualified personnel, and careful oversight to ensure a productive and healthy living arrangement.
Requirements for Reproducing this Article: The above article may be reprinted only if it appears unmodified, including the author description. It must be accompanied by the following statement: “Reprinted with permission of the Special Needs Alliance – www.specialneedsalliance.org .” The article may not be reproduced online. Instead, references to it should link to it on the SNA website.
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Licensing: What State Agency Licenses Residential Group Homes and Residential Facilities?
The Department of Health (DOH) does not license various residential group care facilities. Licensing is done by one of two state agencies referred to as the primary licensing agency. The two primary licensing agencies for residential group care facilities that DOH regulates are the Agency for Health Care Administration (AHCA) and the Department of Children and Families (DCF).
We receive many inquiries from the public, who are looking for information on how to open a group home. DOH is not a primary licensing agency and does not conduct any inspections at homes/facilities licensed by Agency for Persons with Disabilities (APD). Anyone looking to open a group home needs to initially contact one of the following primary licensing agencies to obtain information on how to open or get licensed by that agency:
- Agency for Health Care Administration for homes/facilities serving the elderly, the disabled and mental health facilities.
- Department of Children and Families for homes/facilities serving children.
- Agency for Persons with Disabilities for homes/facilities serving only individuals with disabilities.
Links to frequently asked questions regarding:
- Group Homes
- Residential Care
What Group Home or Residential Facility Types does DOH Inspect?
The term group home and residential facility are generic terms for a wide variety of facilities. Although uncommon, the same term can have different meanings between different state agencies. The specific residential group care facility types the DOH has inspection authority in are listed in section 381.006(16), Florida Statutes . The DOH residential group care facilities list includes the following: assisted living facility, adult family-care home, short-term residential treatment center, residential treatment facility, home for special services, transitional living facility, crisis stabilization unit, hospice, and intermediate care facility for persons with developmental disabilities.
- For the purpose of the DOH’s residential group care program, the term “Short-term Residential Treatment Center” includes the following DCF licensed residential facilities: addictions receiving facilities, detoxification, programs, and Residential Level 1, Residential Level 2, Residential Level 3, Residential Level 4, and Residential Level 5 programs.
- For the purpose of the DOH’s residential group care program, the term “Residential Treatment Facility (RTF)” includes AHCA licensed facilities which are community-based residences for individuals exhibiting symptoms of mental illness who are in need of a long-term structured living environment. These facilities were designed to provide long-term residential care with an overlay or coordination of mental health services. An AHCA state license covers five levels of care that range from having nurses on staff for 24 hours daily to independent apartment residences that receive only weekly staff contact.
What does an Environmental Health physical plant/group care inspection cover?
The Department of Health (DOH) inspects any DCF or AHCA licensed residential group care facility listed above using Chapter 64E-12, Florida Administrative Code . These DOH group care environmental health inspections are conducted once annually by environmental health field staff from the local county health department (CHD). While there is no state DOH fees related to annual residential group care environmental health inspections, more than half of Florida 67 local CHDs do have local inspection fees passed/approved through the local Board of County or City Commissioners. For information on local fees, please contact the local county health department directly.
In various residential facilities an environmental health inspection helps the facility ensure good sanitary health and safety practices are in place related to construction, operation, and maintenance among the residents, employees, and visitors to the facility. Our purpose is to prevent or minimize the risk of transmitting disease, injury, or bodily harm. The list below includes some of the primary areas the environmental health inspector checks for during their inspection visit.
- House Keeping
- Vermin/Animal Control
- Bed/Bedding
- Water Supply
- Liquid & Solid Waste
- Sanitary Facilities
- Outdoor Area & Equipment
- Indoor equipment/furnishings
- Food Hygiene & Sanitation
- Sanitary bedding
- Solid Waste/garbage
- Sanitary Facilities (Restrooms & Bathing Facilities)
- Repair and Upkeep
- Safe Outdoor Recreational Area
- Vector and Vermin Control
- Water Temperature
The inspector will look throughout the facility to ensure it is being properly maintained. Here is a picture of a hole where vermin were entering into the kitchen cupboards.
Information can be found at the University of Florida's web site Integrated Pest Management .
DOH Rules - Chapter 64E-12, Florida Administrative Code
Frequency: Once per year.
Form Used: DH 4029
The level of food hygiene standards that apply to the kitchen depend on the maximum number of residents the facility is approved to house.
10 or fewer beds:
Frequency: Once per year as part of the physical plant inspection
Form Used: DH 4023
11 or more beds must apply for and obtain a food hygiene permit:
A state DOH food permit is needed when a facility serves food and has a maximum capacity of 11 residents or more. Prior to opening or operating, a set of plans drawn to scale and a completed food hygiene permit application must be submitted to the local county health department for a food hygiene plan review. There is a fee associated with the required plan review. To apply for a food hygiene permit, please go to the food hygiene website or contact your local county health department's environmental health section.
DOH Rules - Chapter 64E-11, Florida Administrative Code
Frequency: Once per quarter or as determined by the level of food service.
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Group Homes
In accordance with All County Information Notice (ACIN) I-49-20 , which was released on June 23, 2020, AFDC-FC group home rates are no longer approved and existing group home rates approved through the rate classification level (RCL) system are terminated December 31, 2020.
Historical Background: Group homes provided the most restrictive out-of-home placement option for children in foster care. They provided a placement option for children with significant emotional or behavioral problems who require more restrictive environments. The licensed group home is defined as a facility of any capacity which provide 24-hour nonmedical care and supervision to children in a structured environment, with such services provided at least in part by staff employed by the licensee. Group homes run the gamut from large institutional type environments which provide an intense therapeutic setting, often called "residential treatment centers," to small home environments which incorporate a "house parent" model. As a result, group home placements provide various levels of structure, supervision and services.
Group homes may offer specific services targeted to a specific population of children or a range of services depending on the design of their program. These services include substance abuse, minor-parent (mothers and babies), infant programs, mental health treatment, vocational training, mental health day treatment, sex offenders, wards only, emancipation and reunification. Many programs provide more than one service and list their primary service function as reunification of children with the biological family. A high number also list their primary function as emancipation.
Historic Group Home Rate Classification Level (RCL) system Overview For Additional Information:
Foster Care Rates & Outcomes Bureau (formerly named the Foster Care Rates Bureau) 744 P Street, MS 8-3-570 Sacramento, CA 95814
Email: [email protected] (916) 651-9152
Foster Care Rates Bureau 744 P Street, MS 8-3-38 Sacramento, CA 95814 (916) 651-9152

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The Benefits of Group Homes for Adults with Disabilities
Posted on August 15, 2018
Here are the Benefits of Group Homes for Adults with Disabilities
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The residential program at Valley Village provides 24-hour residential care for developmentally disabled adults in the San Fernando Valley. The residences are family-style housing where clients live as a family with care providers and are integrated into the community. The Valley Village Residential Program functions continuously throughout the year.
Valley Village residents participate in numerous community activities every week. Day programs and work opportunities further enrich their socialization and developmental skills. In addition, our clients participate in group activities on weekends. Transportation is included for all clients, so they can enjoy being members of the community.
Valley Village Residential Program has four styles of homes:
- A continuous nursing care home that is staffed 24 hours per day with a licensed nurse;
- A nursing home for less critical, medically fragile clients that is staffed by a licensed nurse 12 hours per day;
- Semi-independent living condominiums that are staffed by a care provider that ensures the residents eat well, pay bills, and other day to day help; and
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Valley Village Vacancies: Currently, Valley Village has vacancies in our male and female ICF/DD-H, ICF/DD-N, ICF/DD-CN, and Semi-Independent Living Program. If you are interested in more information about our residential vacancies, contact Susie Effatian, Residential Program Director at (818) 587-9450.
Intermediate Care Facility/Developmental Disabilities – Habilitative (ICF/DD-H) Homes Valley Village has 14 homes that are licensed by the Department of Health under this category. The people that are served in these homes usually have an intermittent need for nursing care as well as assistance with activities of daily living (ADLs).
Intermediate Care Facility/Developmental Disabilities – Nursing (ICF/DD-N) House This home serves 12 individuals with intellectual disabilities who have more needs for nursing care, for monitoring of medications or conditions such as epilepsy. It is also licensed by the Department of Health but as a non-ambulatory home. This home was opened to serve clients that no longer could safely stay in other types of settings due to their medical conditions.
Intermediate Care Facility/Developmental Disabilities – Continous Nursing (ICF/DD-CN) This home serves individuals with developmental and intellectual disabilities who have the need for continuous 24-hour nursing care. This home was opened to try to prevent our clients from having to go into an institutional setting as they age and require more frequent medical intervention.
Semi-Independent Living Program This program provides clients the opportunity to experience more independence and a chance to use the skills they have developed in an apartment living situation. This program has a capacity of eight clients living in three condominiums. In this setting, clients are responsible for paying their rent and utility bills as well as budgeting and shopping for their own food.
This housing is offered without regard to race, color, religion, sex, gender identity and expression, family status, national origin, marital status, ancestry, age, sexual orientation, disability, source of income, genetic information, arbitrary characteristics, or any other basis prohibited by law.

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What Is a Group Home?
Aron Janssen, MD is board certified in child, adolescent, and adult psychiatry and is the vice chair of child and adolescent psychiatry Northwestern University.
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- Signs a Teen Might Benefit
How Group Homes Work
Potential pitfalls.
Group homes provide therapy, 24-hour supervision, and support to people with complex health needs in a home-like setting. This approach is sometimes used to treat teens experiencing mental health or behavioral issues.
Unlike large residential treatment facilities or psychiatric hospitals, group homes serve a small number of teens. Residents live in a family-like setting with trained staff.
In addition to group homes for teens, this model of care is also available for those with medical conditions, intellectual disabilities, and for older adults who need supervised care.
This article discusses how group homes work and signs that a teen may benefit from this type of treatment. It also explores some of the uses, advantages, and possible pitfalls of group homes for teens.
Signs a Teen Might Benefit from a Group Home
No parent wants to imagine having to place their child in a group home. But sometimes, a residential setting is the best place for a teen who needs intensive help .
Teens that may benefit from a group home setting include those who have:
- Co-occurring conditions that make treatment more complex
- Inadequate support at home
- Poor results from previous experiences in outpatient programs
- Safety concerns due to threats of violence, self-harm, or suicidal thoughts
- Repeated substance use relapse
A mental health professional may also recommend a group home if a teen has experienced severe mood or behavior changes or has disciplinary problems at school or in the community.
If a teen is struggling with mental health issues like an eating disorder , substance abuse problems, or self-harm issues , a group home can provide a structured, therapeutic environment and help teens make emotional and behavioral changes.
Group homes can also provide a transition from a higher level of residential care. After a short stay in a psychiatric hospital, or after being released from a juvenile detention facility, a teen may be moved to a group home to continue working on their goals. This process is known as deinstitutionalization .
Usually, a teen's goal is to eventually return home. The length of stay in a group home may vary between a month and several months (or perhaps even years).
The daily schedule for group home residents is structured to include active participation in therapy, school, self-care, and learning activities. Clear rules and consequences are enforced by staff to create a safe environment that helps teens create positive changes.
Residents usually attend local public schools with group home staff maintaining close contact with teachers to monitor behavior and academic progress.
While living in the group home, teens often earn privileges through a level system or token economy system. Teens who follow the rules will be granted access to more privileges, such as electronics time or opportunities to go on outings.
Teens living in a group home are actively involved in the day-to-day activities of the home, such as shopping and preparing meals, cleaning the house, and planning group activities.
Within the context of living and learning together, the group home setting provides opportunities for teens to learn new skills. Staff provide ongoing coaching and look for teaching opportunities when problems arise. Teens may learn skills, from how to do laundry to how to manage their anger , in preparation for independent living.
Group homes can help teens practice skills in a safe and supervised environment. In addition to utilizing behavioral management strategies such as token economy systems that allow kids to earn privileges for good behavior, group homes also help teens develop life skills that will allow them to live independently in the future.
Uses of Group Homes
The treatment provided in a group home focuses primarily on improving self-esteem, teaching new skills, and holding teens accountable for their behavior. Some of the conditions or issues that may be addressed in a group home setting include:
- Abuse and trauma
- Behavioral issues
- Criminal behavior or violence
- Eating disorders
- Mental disorders
- Poor self-esteem
- Social issues
- Substance use
Some group homes offer specialized treatment for specific issues, like autism or inappropriate sexual behavior.
Most group home programs include:
- Anger management
- Drug education
- Family therapy
- Group therapy
- Individual therapy
- Individualized behavior programs
If the goal is for a teen to return home, family involvement is critical. Participation in family therapy is essential to helping the family be prepared for a teen's return home.
Group homes offer a small therapeutic setting where each teen becomes well known to the staff. Each teen's individual needs can be addressed.
The home-like environment is comfortable and familiar and, in this setting, teens learn skills to get along with family members. With strong family support, a group home may be a good choice for many teens having emotional or behavioral problems.
Group homes are often good solutions for teens who need more support. While their teens are getting help, parents can learn new strategies for helping teens cope with the eventual return home.
Research suggests that teens do experience positive changes in their behavior while they are in a group home setting. However, there is little research to suggest that these positive effects are sustained over the long term.
More research is needed to better understand the efficacy of group homes for teens. In particular, further studies are needed to explore which treatment models may be most effective for specific problems that teens might be facing.
It can be difficult to get a health insurance company to cover the cost of living in a group home. Since they serve only a small number of teens, the costs can be quite high.
It can be difficult to find an available bed in a group home as well. Many of them have long waiting lists and quite often, it can be difficult to find a group home located within the teen's same school system.
Children and teens in foster care may be placed in a group home setting. This can be very restrictive in comparison to living with a foster family. And when a group home becomes a long-term placement, the rotation of staff can interfere with a child's ability to develop healthy attachments.
While group homes for teens can be helpful, they are not the right choice for every child. It is important to talk to your child's healthcare provider and therapist to determine what treatment approach is best suited to your teen's needs.
James S. What works in group care? - A structured review of treatment models for group homes and residential care . Child Youth Serv Rev . 2011;33(2):308-321. doi:10.1016/j.childyouth.2010.09.014
Pane Seifert HT, Farmer EM, Wagner HR 2nd, Maultsby LT, Burns BJ. Patterns of maltreatment and diagnosis across levels of care in group homes . Child Abuse Negl . 2015;42:72-83. doi:10.1016/j.chiabu.2014.12.008
By Amy Morin, LCSW, Editor-in-Chief Amy Morin, LCSW, is the Editor-in-Chief of Verywell Mind. She's also a licensed clinical social worker, psychotherapist, and international bestselling author. Her books, including "13 Things Mentally Strong People Don't Do," have been translated into more than 40 languages. Her TEDx talk, "The Secret of Becoming Mentally Strong," is one of the most viewed talks of all time.
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Group homes
- Issues papers
This issues paper explains our understanding of the key issues experienced by people with disability who live in group homes. The paper includes 10 questions to help people and organisations to provide responses.
The issues paper invited feedback about the experiences of people with disability living in group homes.
View the responses to the issues paper
Auslan video, issues paper - group homes (auslan).
Video transcript
Group homes issues paper, part a – introductory matters.
The living arrangements of people with disability are a key area of inquiry for the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability (the Royal Commission).
People's homes or places of living are a setting where violence, abuse, neglect and exploitation may take place. The Royal Commission wants to understand the experiences of people with disability, where they live, and who they live with.
We recognise that the vast majority of people with disability live in their own homes, some with families and some on their own. However, about 17,000 people with disability live in group homes in Australia and around 30% of those residents have mild intellectual disability.
This issues paper focuses on 'group homes', which is a form of accommodation where services and supports are provided to four to six long-term residents with disability.
The Royal Commission is publishing this paper to invite further information and discussion on group homes from the public. We are interested in finding out about key issues that the Royal Commission should explore and examples of good practice in group homes.
The experiences of people with disability who live in other forms of accommodation will be addressed in future issues papers.
A list of questions are included below to assist people and organisations who want to make contributions to the Royal Commission about group homes. The questions are simply a guide. You do not have to answer every question and your response does not have to address any of the questions.
Please send in any information that will assist the Royal Commission. Our contact details are listed at the end of the paper.
A human rights-based approach
The Terms of Reference recognise that Australia has international obligations to take appropriate legislative, administrative and other measures to promote the human rights of people with disability.
The right to independent living and inclusion in the community is well established in the United Nations Convention on the Rights of Persons with Disabilities (CRPD). Article 19 of the CRPD promotes and protects the equal rights of all persons with disabilities to live independently and be included in the community.
The United Nations Committee on the Rights of Persons with Disability (the CRPD Committee) has said that, to live independently people with disability must have 'all necessary means to enable them to exercise choice and control over their own lives', including in relation to 'personal lifestyle and daily activities'. The CRPD Committee defined living independently in the community as living in settings 'outside residential institutions of all kinds'. In short, article 19 emphasises the right to exercise choice and control by the person with disability.
The Terms of Reference also require the Royal Commission to consider the multi-layered experiences of people with disability of different age, sex, gender identity, sexual orientation and race. In particular, the Royal Commission will look at the experience of First Nations people with disability and culturally and linguistically diverse people with disability, as well as the experience of women and children with disability.
What are group homes?
Generally, 'group homes' refers to accommodation where services and supports (both within the home and the community) are provided to four to six long-term residents with disability. Group homes may include 24-hour on-site staff support.
Group homes are defined in the National Disability Insurance Scheme (Specialist Disability Accommodation) Rules 2016 'houses that are enrolled (or will be enrolled) to house four or five long-term residents…typically classified as Building Class 1(b)(i) or 3 under the Building Code of Australia.' All building work must comply with the requirements of the Building Code of Australia which provides the minimum requirements for safety, health, amenity and sustainability in the design and construction of new buildings (and new building work in existing buildings).
A group home must meet the National Disability Insurance Scheme (NDIS) criteria to be eligible for Specialist Disability Accommodation (SDA) funding. However, some group homes are run privately without SDA funding. Those homes may not comply with the Building Code requirements, and may accommodate slightly fewer, or slightly more than, four to five residents. This means that there is no official definition which covers all group homes in Australia.
Until recently group homes were regulated and monitored by State agencies such as Community Visitors and Disability Commissioners. However, following the establishment of the National Disability Insurance Scheme (NDIS), the roles and responsibilities of these groups have been progressively transferred to the NDIS Quality and Safety Commission.
Independently of the NDIS, there are many Commonwealth and State laws that apply to group homes. These include legislation relating to workplace health and safety; planning and environmental protection; and the regulation of the charities which operate some group homes.
Why is the Royal Commission looking at group homes?
Housing people with disability in residential institutions (often referred to as institutionalisation) in Australia can be traced back to the late 1800s. Typically institutions accommodated large numbers of people with disability in conditions that were often extremely harsh. Many people with disability living in institutions were denied basic human rights and had little or no access to the wider community. This left residents isolated and at risk of violence, abuse, exploitation and neglect.
In the mid-to-late 20th century, community attitudes about people with disability and institutions began to shift. From the 1970s, the disability rights movement advocated for an end to institutionalisation. The United Nations proclaimed 1981 to be the 'International Year of Disabled Persons', and emphasised the importance of full participation and equality for people with disability.
Disability advocates called on governments to legislate to prevent discrimination against people with disability and to promote the inclusion of people with disability within the Australian community.
The Commonwealth Parliament responded to the arguments of the disability community by enacting:
- The Disability Services Act 1986 (Cth) which provides a comprehensive framework for the funding and provision of support services so as to enable persons with disability to work towards full participation as members of the community;
- The Disability Discrimination Act 1992 (Cth) which aims to eliminate discrimination against people with disabilities, ensure equality before the law and promote acceptance within the community of the fundamental rights of people with disabilities.
These developments encouraged the closure of large institutions and the relocation of people with disability to alternative forms of accommodation.
Despite the marked shift away from relying on institutions, concerns regarding the living arrangements for people with disability continue to be raised. Many advocates claim that people with disability continue to experience exclusion and isolation in group homes.
Over time, group homes have become a common form of accommodation for people with disability who were moved out of institutional care. The group home model was intended to provide people with disability with more independence and meaningful life choices. Many people think that group homes do not achieve these benefits.
Disability advocates point to research highlighting that segregated environments such as group homes increase the risk of violence, abuse, neglect and exploitation for people with disability. Concerns have also been raised about the use of restrictive practices in group homes. Restrictive practices are actions that restrict the rights or freedom of movement of a person with disability; some examples are using medication, locking a person in a room or tying them to a bed.
Please answer as many of these questions as you wish. You do not need to answer them all and your response does not have to address any of the questions.
If you have experience of violence, abuse, neglect or exploitation in group homes you can also make a submission via the Royal Commission's website.
- Have you, any member of your family, or anyone you care for, lived in group homes? Are you willing to share your experiences or those of another person with the Royal Commission?
- What is your opinion of the quality of life for people with disability in a group home?
- Are you aware of any violence, abuse, neglect or exploitation of people with disability in group homes? Are you willing to share your knowledge with the Royal Commission?
- When violence, abuse, neglect and exploitation occurs in group homes, what do you think are the causes? What can be done to prevent violence, abuse, neglect or exploitation in group homes?
- Do you consider the experiences of violence, abuse, neglect and exploitation in group homes different for particular groups of people with disability? For example, how does a person's gender, age, or cultural or sexual identity impact on their experiences? What are the experiences of First Nations people in relation to group homes?
- Is there a continuing role for group homes in providing accommodation for people with disability? If so, what is the role? If not, what are the alternatives?
- Are you aware of the use of restrictive practices in group homes that you can share with the Royal Commission? If so, what needs to change or happen to eliminate the use of restrictive practices in group homes?
- What barriers or obstacles exist for people with disability identifying, disclosing or reporting incidents of violence, abuse, neglect or exploitation? What should be done to encourage investigating and reporting of violence, abuse, neglect or exploitation in group homes when it occurs?
- Should anything be done to improve or change staffing in group homes to better support the choices and potential of people with disability?
- What else should we know? Have we missed anything?
Responses to this issues paper
Responses to this issues paper can be provided:
- by email to [email protected]
- by letter to GPO Box 1422 QLD 4001
- by phone on 1800 517 199 or +61 7 3734 1300. Between 9:00am to 6:00pm AEDT Monday to Friday.
If possible, please provide your responses by 28 February 2020. Responses will also be accepted after this date.
Support to respond to our questions
The Australian Government provides support to assist people to engage with the Royal Commission. These include:
- free legal advisory services provided by National Legal Aid and the National Aboriginal and Torres Strait Islander Legal Services
- emotional support services provided by the Blue Knot Foundation.
- advocacy support services provided under the National Disability Advocacy Program.
Further information about these supports, including how to access them, is available on our website: disability.royalcommission.gov.au/support
Consenting to publication of your responses
All responses will inform the work of the Royal Commission but your response will not be made public if you do not wish it to be. Please indicate if you consent to your response being made public on the Royal Commission's website.
We also recognise group home living is only one of many issues for consideration by the Royal Commission and we invite your ideas on other matters we should be examining related to Homes and Living. Based on your feedback and our research, other accommodation related issues will be addressed in issues papers we will publish in 2020.
Overview of responses to the Group homes Issues paper (Auslan)
Overview of responses to the Group homes Issues paper
Last November the Disability Royal Commission asked for feedback on people’s experiences of group homes.
We received responses from family members of people with disability who have lived in group homes, advocates and organisations.
Thirty six responses are now available on our website.
Respondents detailed incidents of violence, abuse, neglect and exploitation of people with disability by group home staff.
We heard about other issues, for example:
- a lack of choice and control for people with disability living in group homes
- violence between group home residents
- use of restrictive practices in group homes such as being tied to a chair or locking fridges and doors to restrict access to food and free movement.
Many respondents outlined the experiences of violence and human rights violations of women in group homes.
Women with Disabilities ACT and Women With Disability Australia said violence against women in group homes can include sexual assault, menstrual control and forced contraception.
Many people said it was difficult to make complaints about violence, abuse, neglect and exploitation in group homes.
Responses reflect different views about the role of group homes for people with disability.
Responses also included proposals for change.
Responses will help develop our final recommendations to improve the future for people with disability in group homes.
More information is on our website. Go to ‘policy & research’ and click on ‘issues papers’.

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For someone with a mental health condition, the basic necessity of a stable home can be hard to come by. The lack of safe and affordable housing is one of the most powerful barriers to recovery. When this basic need isn’t met, people cycle in and out of homelessness, jails, shelters and hospitals. Having a safe, appropriate place to live can provide stability to allow you to achieve your goals.
You may run into housing issues after being discharged from an inpatient care unit or jail and find that you have no home to return to. Even if you haven’t been hospitalized, finding an affordable home can be difficult. Many people with a serious mental illness live on Supplemental Security Income (SSI), which averages just 18% of the median income and can make finding an affordable home near impossible.
Finding stable, safe and affordable housing can help you on your journey to recovery and prevent hospitalizations, homelessness and involvement in the criminal justice system.
What Should You Look for in Housing?
A good housing match is one that meets four key needs.
Housing should be affordable. Ideally, this means you would have to pay no more than 30% of your income for housing costs. Having to pay more may make it hard to afford needs like health care, food or clothing. Many people with mental illness may have low incomes. To meet housing costs they may need additional financial assistance, like government-funded rental assistance or rental subsidies.
Housing should offer the right amount of independence. An important part of housing is the freedom to choose where and what type you want. Different types of housing can offer someone living with mental illness different levels of independence and care, so it’s important to determine which type would work best for you.
Housing should meet your physical needs. If you have a mental illness and a physical disability you may need housing features like ramps or alarms with blinking lights. Many people with mental illness also may not drive and therefore would need a home close to treatment providers and community resources, as well as public transportation.
Housing should be discrimination-free. The Fair Housing Act bars discrimination in rental housing based on disability. This means that landlords and property owners cannot refuse to rent to you because of a disability. They must also make reasonable accommodations and allow for modifications to fit your needs.
Types of Housing
Housing options range from completely independent living to 24/7 care. The type of housing that is right for you can depend on whether you need assistance paying your bills, cleaning, making appointments or require no assistance at all. Choose a type of housing that fits your individual needs so your recovery can be your priority.
Supervised Group Housing
This type of housing provides the most support for its residents. Trained staff members are present 24/7 to provide care and assistance with things like medication, daily living skills, meals, paying bills, transportation and treatment management. These group homes provide their residents with their own bed, dresser and closet space, and shared bathrooms and common areas. This is the best type of housing for people experiencing a serious mental illness which may affect their ability to perform their daily tasks.
Partially Supervised Group Housing
Some support is provided for the residents, but staff isn’t there 24 hours a day. The residents can be left alone for several hours and are able to call for help if needed. People who choose to stay in these group homes can perform their daily living tasks independently or semi-independently, help with cooking and cleaning and may even hold a part-time job or participate in a day program.
Supportive Housing
Supportive housing provides very limited assistance. The residents of these homes live almost independently and are visited by staff members infrequently. However, they do have someone to call and resources available to them if a problem does arise.
Rental Housing
This type of housing is for someone who is completely independent. Rent can be paid for in full by the individual or subsidized by a third party, such as the government or a non-profit agency. Someone who chooses this type of housing can take care of all their basic needs like cooking, cleaning, paying bills and managing their medication. They also may have a job and have or be seeking custody of children. If this is the right type of housing for you then you will still most likely work with a caseworker to manage and maintain the different aspects of your recovery.
Home Ownership
A homeowner is able to live completely independent and manage both their responsibilities of day to day living and the responsibilities of caring for and maintaining a home. They must be able to stay in one location for longer than renters and should involve themselves in the community. A homeowner is usually someone who has a steady income, can handle their bills and can maintain taxes and insurance on their home.
Finding Housing Support
Reach out to your local NAMI Affiliate . They may be able to help put you in touch with support and housing resources in your area.
The United States Department of Housing and Urban Development (HUD) provides a number of housing assistance and counseling programs. The Housing Choice Voucher Program (Section 8) is the federal government’s program for assisting low-income families, the elderly and the disabled. Check out the Public Housing Agency to help you find public housing using the Housing Choice Voucher Program.
HUD also helps apartment renters by offering reduced rents to low-income residents. Under this program, a renter pays 30 percent of their gross adjusted income for housing and utilities. The landlord then receives a voucher from the federal government which covers the remainder of the rent.
Section 811
The Supportive Housing for People with Disabilities Program (Section 811) is a federal program dedicated to developing and subsidizing rental housing for very or extremely low income adults with disabilities, like a chronic mental illness. The biggest difference between this program and similar ones is that it provides housing specifically for the disabled and ensures that all housing has access to appropriate supportive services like case management and employment assistance.
In a crisis? Call or text 988.

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How to Start a Group Home Download Article parts 1 Comparing Your Vision to Reality 2 Navigating the "Red Tape" 3 Establishing Your Home Other Sections Video Related Articles References Article Summary Co-authored by Dan Bodner and Christopher M. Osborne, PhD Last Updated: June 15, 2022 References Approved
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